presentation sca interim report q2 2011
TRANSCRIPT
Interim Report1 January – 30 June 2011
Interim Report Q2 2011
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High grade deinking
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Polyethylene (PE) Bags, backsheet, pack.film Propylene (Contract fd) SuperabsorbentOil (eur/kg) Polypropylene (PP homo) NW, Fibres
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Recovered paper - USUSD/short ton
USD/metric ton EUR / ton
Recovered paper - Europe
Oil based material
NBSK pulp
Increased raw material prices
EUR / kg
Interim Report Q2 2011
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Summary – H1 2011 vs H1 2010
Interim Report Q2 2011
Sales increased 5%* Hygiene business
Higher volumes Good growth in emerging markets
• Personal care, 9%**• Tissue, 9%**
Packaging and Forest Products Packaging volumes increased 2%
• Corrugated volumes decreased 2%• Corrugated prices increased 13%
Publication paper volumes decreased 1% Solid-wood product volumes increased 16%
EBIT increased 1%*** Higher prices and volumes Cost savings Significantly higher raw material costs, SEK 2.1bn Higher distribution costs Negative currency impact, SEK 600m
Profit before tax decreased 1%*** Cash flow from current operations: SEK 1,840m* Adjusted for exchange rate movements and divestments** Adjusted for exchange rate movements*** Excluding restructuring costs and adjusted for exchange rate movements
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Summary - Q2 2011 vs Q2 2010
Interim Report Q2 2011
Sales increased 6%* Hygiene business
Higher volumes Good growth in emerging markets
• Personal care, 11%*• Tissue, 9%*
Packaging and Forest Products Packaging volumes flat
• Corrugated volumes decreased 3%• Corrugated prices increased 12%
Publication paper volumes increased 4% Solid-wood product volumes increased 19%
EBIT decreased 7%** Higher prices and volumes Cost savings Significantly higher raw material costs, SEK 900m Higher distribution costs Negative currency impact, SEK 300m
Profit before tax decreased 10%** Cash flow from current operations: SEK 1,487m* Adjusted for exchange rate movements** Excluding restructuring costs and adjusted for exchange rate movements
SEK millions H1 H1 Change, Change,
unless otherwise stated 2011 2010 % %**
Net sales 52,064 53,266 -2 5 ***
EBIT* 4,262 4,467 -5 1
EBIT margin* (%) 8.2 8.4
Profit before tax* 3,683 3,944 -7 -1
Earnings per share (SEK) 3.85 3.57 8 13
Cash flow from current operations 1,840 2,816
Debt/Equity ratio 0.55 0.62
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H1 2011 results
Interim Report Q2 2011
* Adjusted for restructuring costs in 2010** Adjusted for exchange rate movements*** Adjusted for exchange rate movements and divestments
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Q2 2011 results
Interim Report Q2 2011
* Adjusted for restructuring costs in 2010** Adjusted for exchange rate movements
SEK millions Q2 Q2 Change, Change,
unless otherwise stated 2011 2010 % %**
Net sales 26,671 27,067 -1 6
EBIT* 2,150 2,440 -12 -7
EBIT margin* (%) 8.1 9.0
Profit before tax* 1,873 2,196 -15 -10
Earnings per share (SEK) 1.96 2.04 -4 +1
Cash flow from current operations 1,487 1,668
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Q2 2011 vs. Q1 2011Summary
Interim Report Q2 2011
Group Sales increased 5%
Higher volumes and prices EBIT increased 2%
Higher volumes and prices Higher raw material costs
Profit before tax increased 3%
Business areas Personal Care, EBIT flat
Higher volumes Higher raw material costs
Tissue, EBIT increased 7% Higher volumes
Packaging, EBIT decreased 3% Higher prices Higher volumes Higher raw material costs
Forest Products, EBIT increased 7% Lower raw material costs
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Personal CareQ2 2011 vs Q2 2010
Interim Report Q2 2011
-5%
EBIT margin 11.7%**9.5%
-23%**
SALES SEKm
EBIT SEKm
6,4186,116
753**
582
Q2 2011 Q2 2010
Q2 2011 Q2 2010
* Excluding exchange rate effects** Excluding restructuring costs*** Excluding restructuring costs and exchange rate effects
Sales decreased by 5% (+4%*) Incontinence care increased 2%* Baby diapers increased 8%* Feminine care increased 1%* Emerging markets 11%*
• Incontinence care 5%*• Baby diapers 20%*• Feminine care 2%*
EBIT decreased by 23%** (-18%***) Higher volumes Cost savings Significantly higher raw material costs
9 Interim Report Q2 2011
TissueQ2 2011 vs Q2 2010
-5%
EBIT margin 7.9%7.0%
-16%
10,0649,609
791668
EBIT SEKm
Q2 2011 Q2 2010
Q2 2011 Q2 2010
* Excluding exchange rate effects
Sales decreased by 5% (+4%*) Consumer tissue increased 4%* AFH tissue increased 6%* Emerging markets 9%*
• Consumer tissue 8%*• AFH tissue 11%*
EBIT decreased by 16% (-8%*) Higher prices Changed product mix Higher volumes Higher raw material, energy
and distribution costs
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PackagingQ2 2011 vs Q2 2010
Interim Report Q2 2011
1%
EBIT margin 4.5%6.8%
6,7706,856
306
467
SALES SEKm
EBIT SEKm
* Excluding exchange rate effects and divestments ** Excluding exchange rate effects
Q2 2011 Q2 2010
Q2 2011 Q2 2010
Sales increased by 1% (+11%*) Higher prices Lower volumes due to divestments
EBIT increased 53% (62%**) Higher prices and volumes Cost savings Higher raw material costs, SEK 500m Negative currency impact53%
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Forest ProductsQ2 2011 vs Q2 2010
Interim Report Q2 2011
6%
EBIT margin 16.0%11.7%
-23%
4,3084,566
691
532
SALES SEKm
EBIT SEKm
Q2 2011 Q2 2010
Q2 2011 Q2 2010
* Excluding exchange rate effects
Sales increased by 6%(8%*) Higher prices for publication papers and pulp Higher volumes
EBIT decreased by 23% Higher raw material and energy costs Negative currency impact
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Outlook 2011
Interim Report Q2 2011
Good demand for all businessesGood growth in Emerging markets for Hygiene
businessesContinued high raw material costs Increasing corrugated pricesPrice increases for Personal Care,
Tissue and publication papers during H2
Interim Report Q2 201113
Q & A
14 Interim Report Q2 2011
Johan Karlsson, VP Investor RelationsTel: +46 8 788 51 30
Jessica Ölvestad, Manager Investor RelationsTel: +46 8 788 52 82
IR Contacts:
Email: [email protected] Website: www.sca.com